Walls are closing in and tumbling down in the Adams administration

  

THE CITY

 

Federal authorities have raided the homes of some of the highest-ranking members of Mayor Eric Adams’ administration, including two deputy mayors and the schools chancellor, and seized the electronic devices of New York City’s police commissioner, sources familiar with the situation told THE CITY.

This extraordinary effort in the last two days to obtain evidence from some of the highest-ranking members of Adams’ team — all of whom have longtime and close ties to the mayor — follows other federal raids and seizures that have swept up the mayor and other top aides in what appears to be a broadening investigation of City Hall.

On Wednesday agents showed up around 5 a.m. at the Hamilton Heights townhouse of Sheena Wright, who also happens to be the fiancé of Chancellor Banks. The chancellor was seen by THE CITY entering and leaving the townhouse twice on Thursday. Asked about the raid, David Banks declined to comment, saying, “Today is the first day of school, and I am thrilled,” he said, jumping into a SUV to head to a scheduled appearance at a school in Queens.

At the same time agents raided Wright’s townhouse, they simultaneously descended upon Deputy Mayor Philip Banks III’s brick and clapboard single family in Hollis, the sources said. A neighbor of Phil Banks’ home told THE CITY they woke up to a disturbance Wednesday morning and about 15 agents were on the street.

Then on Thursday the Manhattan U.S. Attorney’s office issued search warrants seizing the cell phones of Police Commissioner Edward Caban, a development first reported by Spectrum News NY1. Asked about this, the department’s press office responded, “The Department is aware of an investigation by the U.S. Attorney’s Office for the Southern District of New York involving members of service. The Department is fully cooperating in the investigation.”

A spokesperson for Manhattan U.S. Attorney Damian Williams declined to comment.

The New York Times reported that the FBI raided the home of a third Banks brother, Terrence, and seized electronic devices from Tim Pearson, one of another senior advisor to the mayor and one of Adams’ closest associates. In a lawsuit filed recently against Pearson alleging workplace retaliation, the plaintiff stated an FBI agent recently knocked on his door and asked about Pearson.

Adams spoke briefly with reporters as he left City Hall on Thursday afternoon.

“The goal is to follow the law and that is what this administration always stood for and what we’re going to continue to stand for,” he said.

When asked if he thought his staff followed the law, given multiple investigations, Adams said: “I think I answered the question, and that I’m going to continue to say as I’ve lived my entire life and I have confidence in the team, the team here. We’re going to follow the rules and comply with any questions that are asked of us.” 

NY Post 

Federal agents hit NYPD Commissioner Edward Caban and members of the nation’s biggest police force this week — amid a stunning spate of raids on others in Mayor Eric Adams’ inner circle, sources said Thursday.

Agents showed up to the homes of Caban, Deputy Mayor for Public Safety Phil Banks and the townhouse shared by Schools Chancellor David Banks and First Deputy Mayor Sheena Wright with search warrants early Wednesday and seized their electronic devices, according to law-enforcement sources.

Phil and David Banks’ brother, Terence Banks, a former MTA official who has turned to consulting work, was also targeted in the actions, sources said.

Another top Adams aide – retired NYPD inspector Timothy Pearson – had his phones subpoenaed, according to the sources.

It wasn’t clear if the raid on the Harlem home shared by Wright and David Banks targeted one or both of them.

The connections between the raids, subpoenas and other law enforcement sweeps targeting Caban, other NYPD officials and City Hall bigwigs remained murky Thursday.

But sources said the top cop and others in the department were targeted as part of a sweeping corruption probe involving influence peddling.

Caban’s twin brother, James Caban, a former NYPD sergeant, was served a search warrant with a subpoena, sources said. Investigators are looking into his role in the world of nightlife enforcement, according to sources.

Sources confirmed that NYPD Chief of Staff Raul Pintos and two precinct commanders in Manhattan and Queens were asked to turn over their phones.

The feds also are looking into rank-and-file NYPD officers, from precinct commanders on down, who serve in Midtown South and other precincts with a strong nightlife presence, sources said.

None has been accused of any crime.

The probes are being led by federal prosecutors in the Southern District of New York, which has also been eyeing Adams’ 2021 campaign in another unrelated high-profile investigation, sources said.

Adams broke his daylong silence on the raids Thursday afternoon as he exited City Hall to a throng of reporters.

“As you’ve heard me say over and over again, as a former law enforcement person we will always follow the law and that is what this administration always stood for and will continue to stand for,” he said.

“Whatever information is needed, we will turn over.”

City Hall Chief Counsel Lisa Zornberg, in a statement issued shortly after the raids were publicly revealed, implied city officials weren’t the probe’s ultimate targets.

“Investigators have not indicated to us the mayor or his staff are targets of any investigation,” said Zornberg in a statement.

“As a former member of law enforcement, the mayor has repeatedly made clear that all members of the team need to follow the law.”

An NYPD spokesperson confirmed an investigation focused on police officials.

“The Department is aware of an investigation by the U.S. Attorney’s Office for the Southern District of New York involving members of service. The Department is fully cooperating in the investigation,” the spokesperson said in a statement Thursday, referring questions to Manhattan federal prosecutors.

Caban could not be reached for comment. He was appointed to the commissioner role in July 2023 after previous top cop Keechant Sewell’s surprise resignation.

As commissioner, Caban works closely with the Manhattan US Attorney’s Office that now appears to be investigating him, many of his officers and a smorgasbord of his high-ranking city government counterparts.

Representatives for the US Attorney’s office declined to comment.

When The Post tried to reach Chief of Patrol John Chell for comment about the raids and subpoenas, NYPD Deputy Commissioner for Public Information Tarik Sheppard got on the phone and called the reporter a “f—ing scumbag.”

Sources said Terence Banks is being eyed over suspicions that since his retirement, he has acted as an unregistered lobbyist, who has brought businesses to City Hall through connections to his brother in a way that circumvents conflict of interest rules, source said.

Pearson, an Adams confidante who recently made headlines for being the subject of a sexual harassment suit, has long faced scrutiny for his shady role within the administration, which includes overseeing contracts for security at migrant shelters.

The FBI pinched the mayor of New York City

 

 NY Times

F.B.I. agents seized Mayor Eric Adams’s electronic devices early this week in what appeared to be a dramatic escalation of a criminal inquiry into whether his 2021 campaign conspired with the Turkish government and others to funnel money into its coffers.

The agents approached the mayor after an event in Manhattan on Monday evening and asked his security detail to step away, a person with knowledge of the matter said. They climbed into his S.U.V. with him and, pursuant to a court-authorized warrant, took his devices, the person said.

The devices — at least two cellphones and an iPad — were returned to the mayor within a matter of days, according to that person and another person familiar with the situation. Law enforcement investigators with a search warrant can make copies of the data on devices after they seize them.

A lawyer for Mr. Adams and his campaign said in a statement that the mayor was cooperating with federal authorities, and had already “proactively reported” at least one instance of improper behavior.

“After learning of the federal investigation, it was discovered that an individual had recently acted improperly,” said the lawyer, Boyd Johnson. “In the spirit of transparency and cooperation, this behavior was immediately and proactively reported to investigators.”

Mr. Johnson said that Mr. Adams has not been accused of wrongdoing and had “immediately complied with the F.B.I.’s request and provided them with electronic devices.” Mr. Adams had attended an anniversary celebration for an education initiative at New York University.

The statement did not identify the individual, detail the conduct reported to authorities or make clear whether the reported misconduct was related to the seizure of the mayor’s devices. It was also not immediately clear whether the agents referred to the fund-raising investigation when they took the mayor’s devices.

Mr. Adams, in his own statement, said that “as a former member of law enforcement, I expect all members of my staff to follow the law and fully cooperate with any sort of investigation — and I will continue to do exactly that.” He added that he had “nothing to hide.”

The surprise seizure of Mr. Adams’s devices was an extraordinary development and appeared to be the first direct instance of the campaign contribution investigation touching the mayor. Mr. Adams, a retired police captain, said on Wednesday that he is so strident in urging his staff to “follow the law” that he can be almost “annoying.” He laughed at the notion that he had any potential criminal exposure.

Spokesmen for the F.B.I. and the U.S. attorney’s office for the Southern District of New York, whose prosecutors are also investigating the matter, declined to comment.

 

Eric Adams gave Eric Ulrich the 411 about the feds cracking down on his gambling ties

 NY Daily News

Former New York City Buildings Commissioner Eric Ulrich told investigators that Mayor Adams tipped him off to the possibility he could be reeled into an illegal gambling investigation — months before the Manhattan district attorney’s office executed a search warrant on Ulrich and its probe became public knowledge, two sources with knowledge of the matter told the Daily News.

“Watch your back and watch your phones,” Adams said to Ulrich, according to the two sources with knowledge of Ulrich’s interview with prosecutors at the Manhattan DA’s office in November.

In that interview, Ulrich told investigators he interpreted Adams’ reference to a friend with illegal gambling ties and the statement “watch your phones” as an indication that a probe was underway, sources said.

The revelation that Adams may have clued Ulrich into an investigation before it became public raises questions, including whether there’ll be fallout if Adams had prior knowledge of the situation, how he might have learned about it and why he might have shared that information with Ulrich.

Adams’ spokesman Fabien Levy said that “the mayor has not received any requests from the Manhattan DA surrounding this matter and has never spoken to Mr. Ulrich about this investigation, either before or after the matter became public.”

“Not only did the mayor not know anything of the investigation before news of it broke last fall, but it makes no sense for anyone to learn about or even suspect a criminal investigation into a particular person and then decide to promote that same person,” Levy said.

There is no indication Adams is a target of the probe.

News about the probe into Ulrich broke last November, seven months after Adams tapped him to become buildings commissioner. Two days after the probe became public, Ulrich resigned amid allegations he was involved in illegal gambling.

More recently, sources revealed that a grand jury is considering charges against Ulrich and that an indictment could come before summer’s end, as first reported by The News.

According to the two sources, who agreed to speak with The News under the condition of anonymity due to the DA’s probe, Ulrich told investigators that Adams revealed the possibility of an investigation during a conversation in May 2022, just days after Adams announced Ulrich’s appointment as head of the Department of Buildings.

Before taking on the commissioner post, Ulrich, a Republican, served as a senior adviser to Adams, who’s a Democrat. During Adams’ run for mayor in 2021, while Ulrich was a City Councilman representing Queens, he backed the mayor and was instrumental in raising money for his campaign.

In early May 2022, days after the announcement that Ulrich would serve as buildings commissioner, he and Adams appeared at an event in the Bronx. After it ended, Adams pulled Ulrich aside and asked him to hand over his phone to a member of Adams’ NYPD security detail, according to the sources’ recounting of what Ulrich told investigators. The sources didn’t specify who that officer was. Which event the two attended together also isn’t entirely clear, but a review of the mayor’s public schedule shows both attended a Department of Buildings Construction Safety Week event on Friday, May 6.

After Ulrich handed over his phone, he and Adams walked away from the cop, and then, according to the sources’ retelling, Adams told Ulrich that “a little birdie” told him a friend of Ulrich’s was involved in illegal gambling and that Ulrich should “watch your back and watch your phones,” a message both sources took as a reference to a potential wiretap.

According to the sources, Ulrich recounted this exchange to Manhattan D.A. investigators on Nov. 2, a day after the search warrant had been executed.

Levy denied that Adams told Ulrich to leave his phone with anyone during any conversation between the two

 

Mario's other son gets whacked by CNN

 

Variety 

CNN said it suspended Chris Cuomo “indefinitely, pending further evaluation,” following new disclosures about how he helped his brother, former New York Governor Andrew Cuomo, in the midst of a scandal over sexual harassment allegations, a move that leaves the WarnerMedia network without the services of its most-watched anchor.

“The New York Attorney General’s office released transcripts and exhibits Monday that shed new light on Chris Cuomo’s involvement in his brother’s defense. The documents, which we were not privy to before their public release, raise serious questions. When Chris admitted to us that he had offered advice to his brother’s staff, he broke our rules and we acknowledged that publicly. But we also appreciated the unique position he was in and understood his need to put family first and job second,” CNN said in a statement Tuesday evening. “However, these documents point to a greater level of involvement in his brother’s efforts than we previously knew. As a result, we have suspended Chris indefinitely, pending further evaluation.”

Dun Dun

 

Times Union

The FBI and the U.S. attorney's office in Brooklyn have launched an investigation that is examining, at least in part, the actions of Gov. Andrew M. Cuomo's coronavirus task force in its handling of nursing homes and other long-term care facilities during the pandemic, the Times Union has learned.

The probe by the U.S. attorney's office in the Eastern District of New York is apparently in its early stages and is focusing on the work of some of the senior members of the governor's task force, according to a person with direct knowledge of the matter who is not authorized to comment publicly.

Last March, as the virus began spreading in New York, Cuomo issued a news release listing the 13 initial members of his coronavirus task force, which has been headed by Linda Lacewell, an attorney and former chief of staff for Cuomo. Lacewell is the superintendent of the state Department of Financial Services. Other task force members include state health Commissioner Howard Zucker, Secretary to the Governor Melissa DeRosa and Beth Garvey, counsel to the governor.

"As we publicly said, DOJ (Department of Justice) has been looking into this for months," said Richard Azzopardi, a spokesman for the governor. "We have been cooperating with them and we will continue to."

Azzopardi did not disclose whether any members of the administration have been interviewed or if they have been served with any subpoenas.

John Marzulli, a spokesman for the U.S. attorney's office in Brooklyn, on Wednesday afternoon said he could not "confirm or deny" whether the office has initiated an investigation

AG James is investigating Governor Cuomo's nursing homes data

 

AG.NY. Gov

Investigations Reveal DOH Publicly Reported Data Undercounted COVID-19 Deaths
and Many Nursing Homes Failed to Comply with Critical Infection Control Policies

AG Conducting Ongoing Investigations into More Than 20 Facilities

NEW YORK – Attorney General Letitia James today released a report on her office’s ongoing investigations into nursing homes’ responses to the COVID-19 pandemic. Since March, Attorney General James has been investigating nursing homes throughout New York state based on allegations of patient neglect and other concerning conduct that may have jeopardized the health and safety of residents and employees.

Among those findings were that a larger number of nursing home residents died from COVID-19 than the New York State Department of Health’s (DOH) published nursing home data reflected and may have been undercounted by as much as 50 percent. The investigations also revealed that nursing homes’ lack of compliance with infection control protocols put residents at increased risk of harm, and facilities that had lower pre-pandemic staffing ratings had higher COVID-19 fatality rates. Based on these findings and subsequent investigation, Attorney General James is conducting ongoing investigations into more than 20 nursing homes whose reported conduct during the first wave of the pandemic presented particular concern.

“As the pandemic and our investigations continue, it is imperative that we understand why the residents of nursing homes in New York unnecessarily suffered at such an alarming rate,” said Attorney General James. “While we cannot bring back the individuals we lost to this crisis, this report seeks to offer transparency that the public deserves and to spur increased action to protect our most vulnerable residents. Nursing homes residents and workers deserve to live and work in safe environments, and I will continue to work hard to safeguard this basic right during this precarious time.”

City orders investigation into crooked homeless services provider that fooled them for five years

THE CITY

 The city on Wednesday filed a complaint in Manhattan Supreme Court seeking a temporary receiver for one of New York’s largest homeless service providers — an act officials referred to not just as unprecedented, but as a source of pride.

They had diligently built a case alleging fraud against Childrens Community Services — a firm that’s reaped nearly $500 million in recent years — and were now taking action to protect both taxpayers and the homeless, officials said.

“We’re proud that our staff saw something and said something,” said Isaac McGinn, a Department of Social Services spokesperson.

But the city’s own court filings show that warning signs about the firm began to emerge as early as September 2015.

A review of those filings and other documents by THE CITY reveal a nonprofit formed in 2014 by a former hotel executive that quickly expanded into a multi-million dollar operation that provided nearly 2,000 units of housing for the homeless.

But the company kept getting contracts to help with the city’s homeless crisis even as concerns over its operations grew. The suspicions culminated in raids this week by city and federal officials amid the city’s accusations of fraud, bid-rigging and bogus vendor headquarters

 From the fall of 2015 into the following spring, the Department of Social Services received invoices submitted with repeat and duplicate charges, the filings show.

In April 2018, a piece by New York Nonprofit Media told the story of CCS under the headline, “How an obscure nonprofit became one of NYC’s largest contractors.”

The story noted that the founder of Childrens Community Services, Thomas Bransky, was a hotelier with no background in homeless services when he launched the nonprofit in early 2014 — and raised questions about whether the company had a physical administrative office.

A copy of Branksy’s resume THE CITY obtained through a public records request shows his previous titles — all at Chicago hotels — were account manager, sales manager and front desk manager.

A message left at a phone number he submitted in documents to the city wasn’t returned.

In May 2018, city social service officials’ concerns about “CCS’s suspicious subcontracting, invoicing and billing practices” prompted them to notify the city’s Department of Investigation.

This week, DOI and federal prosecutors executed search warrants of addresses linked with the firm and its vendors, the court filings show.

Questions sent to DOI late Wednesday about the length of the investigation weren’t immediately answered.

Shithole Hunters Point library under federal investigation

NY Post

Books aren’t the only thing being checked out at this Queens library.

The feds are now probing the problem-plagued new library branch in Hunters Point, The Post has learned.

The US Attorney’s Office in Brooklyn hired an architectural expert to conduct a December survey of the $41.5 million book hub to look for violations of the Americans with Disabilities Act, new Brooklyn federal court filings in a lawsuit against the library reveal.

An attorney for the city’s Law Department blew the lid off the probe in documents filed for the pending suit, saying they needed more time because they’re still awaiting the investigation’s results.

The decade-in-the-making outpost of the Queens Public Library system was hailed by officials as a “stunning architectural marvel” when it opened in September.

But it has since come under fire for its stacks of design and construction problems — including a three-tiered fiction section, a rooftop garden and a reading space on the children’s floor that are all inaccessible for people who use wheelchairs.

The feds’ investigation was launched around the time a disability advocacy group and a Queens woman with mobility problems sued the library and the city, demanding they fix accessibility issues at the new, 32,000 square-foot branch.

Michelle Caiola of Disability Rights Advocates, which filed the suit, said: “We certainly welcome the US Attorney’s involvement as it brings more pressure to bear on the city to make the library fully accessible as quickly as possible.”

It is unclear what steps the feds will take if they find that the Hunters Point branch

DeBlasio fires guy that was investigating him

From the NY Post:

The mayor’s official pretext is that Peters had behaved “in a manner indicating a lack of concern for following the law” by improperly trying to replace the special schools investigator and supposedly lying to a de Blasio aide.

The real issue is surely that he’d done his job too well — better than the mayor expected when he installed his former campaign treasurer at the Investigations Department.

Peters exposed rampant mismanagement and systemic dishonesty at the Housing Authority, uncovered significant scandals at the Administration for Children’s Services and blew the whistle on how top mayoral aides lifted deed restrictions so that a Lower East Side nursing home could be sold to a real-estate developer for luxury condo.

And the firing comes as DOI has been investigating political interference in the Department of Education’s “probe” of Jewish religious schools that don’t teach their students non-religious subjects.

In that and other “matters now being pursued by DOI,” Peters told City Hall last month, “the mayor himself and/or his staff, are potentially a subject of investigation.”

Talk about fishy timing.

Trying to end a pervasive problem

From CBS 2:

The Department of Sanitation said it is illegal to posts signs or ads on poles, boxes, highways, elevated subways or similar public locations. The department said it does give out fines ranging from $75 to $300.

A spokesperson added that research has shown most of the companies use a prepaid phone, which makes it difficult to identify a responsible party. But they do also subpoena phone companies.

Avella said it’s not enough.

“Acknowledging the problem and not fixing it isn’t getting us anywhere. I’m willing to sit down with Sanitation and especially the phone companies,” he said. “We have to end this, because this is out of control.”

Grymes called five of the numbers on various signs, and someone answered at each number.

She got two hang-ups, but three others said they work for legitimate businesses that do offer money for cars and car parts. They would not consent to being recorded and would not give the name of the business or did not know it. Two said the sanitation department does fine them often for the signs, but that doesn’t stop them.

Avella said you shouldn’t take up the offers and the Better Business Bureau also recommends checking with them first to see if the business has any reviews or complains on file. That is, if you know the name.

The sanitation department said a special unit removes illegal signs unless it’s too dangerous or difficult, then the Department of Transportation does it. You can call 311 to report an illegal sign.

Feds looking at Cuomo donors

From the Daily News:

A health care company that got big state grants after its execs and doctors gave to Gov. Cuomo's campaign is being probed by a Manhattan federal grand jury, according to a report Monday.

Crystal Run Healthcare — one of the Hudson Valley's biggest employers — got $25.4 million in taxpayer money after some of its executives, doctors and their spouses gave $400,000 to Cuomo's campaign, the Albany Times Union reported. The paper also reported that grand jury subpoenas seek testimony from "multiple" company employees.

The state gave the money to Crystal Run in 2016 to fund two facilities, the Times Union said.

Crystal Run's founder and CEO, Hal Teitelbaum, gave $50,000 to Cuomo's campaign in 2015 and $20,000 in 2017, records show. His wife, Jennifer, gave $25,000 in 2013.

Feds are on the MTA's case

From the NY Times:

The astronomical costs of building the Second Avenue subway and other New York public transit projects are now the subject of a federal inquiry.

The Government Accountability Office said on Wednesday that it was preparing to launch a study of why transit construction is so much more expensive in the United States than in other parts of the world. Special attention is expected to be paid to New York City, where recent projects have cost far more than anticipated.

Auditors plan to examine contracting policies, station design, project routing, regulatory barriers and other elements that drive cost, comparing practices in different cities in the United States and abroad, officials said. A final report with recommendations is to be issued by the end of the year.

The study was part of the spending bill that was approved by Congress last week. And it comes three months after an investigation by The New York Times revealed how city and state public officials had stood by as a small group of politically connected labor unions, construction companies and consulting firms drove up transit construction costs and amassed large profits.

Spa Castle in trouble again

From the Times Ledger:

A controversial spa in College Point is in trouble once again.

State Sen. Tony Avella (D-Bayside) received a letter from the New York State Department of Labor informing him that Spa Castle, located at 31-10 11th Ave., had been fined $1,000 for violating the Child Labor Statute.

Labor Department Commissioner Roberta Reardon wrote to Avella Jan. 30 about an investigation that was completed in December 2017.

According to Reardon, investigators visited Spa Castle on various occasions and times looking for violations of state laws. “After meticulous review of Spa Castle’s wage and hour records, we substantiated a violation of Article 4, the Child Labor Statute,” she told the senator in the letter.

The statute bans minors from working late hours on school nights.

Reardon said the spa was served a notice of violation on Nov. 4 with a penalty of $1,000, which they paid in full. The investigators were not able to substantiate any allegations regarding overtime.

Bill sticking taxpayers with quite a tab

From the Daily News:

Add another $2.6 million to the city budget — to cover Mayor de Blasio’s legal bills.

The city quietly posted notice of a proposed $2.6 million contract between the Law Department and Kramer Levin Naftalis and Frankel LLP — Hizzoner’s law firm — in the City Record Friday.

The contract is “to provide Legal Services to the mayor in connection with an investigation by the U.S. Attorney’s Office for the Southern District of New York and related work” from 2016 to 2018.

The firm represented de Blasio and others at City Hall in a series of investigations into his dealing with fund-raisers — including Harendra Singh, the businessman who pleaded guilty to bribing the mayor. The mayor and his staff were not charged or convicted of any crimes during the year-long probes — but racked up quite a legal bill.

And the taxpayer-funded tab is expected to keep climbing.

“No,” spokesman Eric Phillips said when asked if the $2.6 million was the full legal bill to the city. “When there is a final, complete amount we will release that figure.”

Torres leading anti-tweeding investigative committee

From the NY Times:

If there was any lingering doubt that Mayor Bill de Blasio’s mostly harmonious relationship with the City Council was about to change, Councilman Ritchie Torres may put that question to rest.

Mr. Torres, a Democrat from the Bronx, has been chosen by the Council’s newly selected speaker, Corey D. Johnson, to be in charge of a new investigations unit that will look into the operation of city agencies.

In an interview, Mr. Torres said that between 10 and 15 professional investigators, possibly including former prosecutors, would be hired and that the committee would use them to conduct its own inquiries.

Among the areas of possible investigative interest, according to Mr. Torres: “The abuse of placards. The use of eminent domain. The disposition of public land. Deed restriction. The disbursement of city subsidies,” he said. “All of it is on the table.”

Questioning Cy's judgment

From NPR:

"If we could have prosecuted Harvey Weinstein for the conduct that occurred in 2015, we would have," said Karen Friedman Agnifilo, chief assistant district attorney.

But criminal attorney Matthew Galluzzo, who once worked in the DA's sex crimes unit, told The Associated Press he believed the audiotape, in which Weinstein acknowledges touching Gutierrez on the breast, could have been used to pursue a case.

"She can testify about what happened, and you've got him acknowledging he did something wrong," Galluzzo said.

Before this week, questions were also being raised about Vance's handling of a fraud investigation involving the Trump SoHo, a condo hotel built by the Bayrock Group. Some early buyers of units at the hotel sued Bayrock, arguing that they had been misled about the hotel's sales records.

The Manhattan DA's office had considered pursuing fraud charges against Ivanka Trump and Donald Trump Jr., who played a big role in promoting the hotel. An investigation by The New Yorker, WNYC and ProPublica said prosecutors wanted to pursue a criminal case, but Vance said evidence to do so was lacking.

The report also noted that Vance had received a $32,000 campaign contribution from one of Trump's lawyers shortly after dropping the case. Vance had also received an earlier donation, which he had returned.

"It was improper for him to accept it in the first place. He responded by returning those donations and then apparently accepted them again after the fact," noted Jim Cohen, a professor at Fordham University School of Law.

Avella calls on US Atty to investigate Queens Machine

"Don't hurt my re-election chances" - de Blasio

From the Wall Street Journal:

In the wake of the presidential election last fall, lawyers for Mr. de Blasio expressed concerns to federal prosecutors about the lengthy nature of their probe and its potential proximity to the mayoral election cycle, requesting that, if possible, prosecutors bring any charges in coming weeks, so the investigation wouldn’t linger into the year of his re-election bid, according to people familiar with the matter.

As part of that effort, Mr. de Blasio’s lawyers urged prosecutors to question the mayor and any relevant aides as soon as possible, these people said.

A spokesman for Mr. Bharara declined to comment.

The probe, of course, has stretched well into Mr. de Blasio’s re-election year, and threatens to extend into campaign season. While public-corruption prosecutors often are mindful that their work may be seen as politicized, many are particularly sensitive to how their decisions might be viewed after Federal Bureau of Investigation Director James Comey endured criticism last year for taking public actions concerning the FBI’s investigation of Democratic presidential nominee Hillary Clinton days before the November election, people familiar with the office said.

The Manhattan U.S. attorney’s office takes into consideration the electoral context of any investigations and possible charges, said Daniel Stein, who was the office’s chief of the criminal division until November 2016, speaking generally about the office’s practices.

“Prosecutors would not bring a case, or close an investigation, before it makes sense to do so,” Mr. Stein said. “But where they can, prosecutors will try to do their work in a way that does not allow an investigation to cloud a candidate or unfairly affect a campaign.”

Around City Hall, some have suggested that if federal prosecutors decide against charging the mayor or any of his aides or allies, they should say so publicly. Such pronouncements, however, are rare.

BdB investigation halts sale of prison to film studio

From SI Live:

The sale of the old Arthur Kill prison site to Broadway Stages was rejected by the state comptroller's office because of the company's ties to investigations into Mayor Bill de Blasio's political fundraising.

The office of State Comptroller Thomas DiNapoli returned the sale contract to state agencies unapproved for "lingering vendor responsibility issues" and questions over the public's investment in the land deal.

The $7 million sale price may be as much as $45 million below market value.

Charlotte Davis, the comptroller's director of contracts, detailed reasons for rejecting the sale in a letter to Frank Pallante of the state Office of General Services on Dec. 21, 2016.

"As discussed," Davis wrote, "Broadway Stages and its owner and president, Gina Argento, appear to be involved parties in State and Federal investigations into campaign contributions to New York City Mayor Bill de Blasio."

While the state can resubmit the contract, the rejection further stalls plans for a new production studio at the closed Arthur Kill Correctional Facility in Charleston.

Three years after the state selected Broadway Stages to develop the land, concerns have been raised over political contributions, tax issues, business integrity and the property's value.

Exactly when the new studio will open is still unclear.

De Blasio claims he will raise private money for his defense

From NBC:

Mayor DeBlasio answers questions from reports for the first time since the I-Team reported he will be questioned by federal prosecutors. Melissa Russo reports.

Related: De Blasio Won't Use Taxpayer Money for His Legal Defense, He Says